Installing OS on a second HDD

It's a very simple and noobish question but, since it's the first time i do this thing, i prefer to have everything clear before attempting it.

I have a single HDD computer with Win 7 installed. I decided to replace the hdd since it's getting slow and noisy.

So what i want to do is install Win 7 on a new HDD, and use my current one as a storage unit.

Now...how can i do that?

Do i simply plug in the new hdd, install win7 on it, set BIOS on making it the 1st on boot priority..and thats it? Or is there any pass i missed?

Thank you for your help